BALTIMORE, Oct. 24 /PRNewswire-FirstCall/ -- T. Rowe Price Group
(Nasdaq: TROW) today announced that Vice Chairman James S. Riepe plans to
retire from the firm at the end of this year and transition his management
responsibilities to Edward C. Bernard. Mr. Riepe has been with the firm for 24
years and his retirement is part of a planned management transition.
Mr. Riepe, 62, has led T. Rowe Price's marketing, investor service, and
technology activities since joining the firm in 1981. During that time, the
firm's assets under management have grown from $13 billion to a record $245
billion as of June 30, 2005 and T. Rowe Price has become widely recognized as
one of the nation's leading investment management organizations, which now
operates on a global scale.
A 36-year veteran of the mutual fund industry, Mr. Riepe has been one of
its most visible and prominent leaders. He recently completed his second term
as Chairman of the Board of Governors of the Investment Company Institute, the
national trade association for the mutual fund industry, and has served for 19
years on its Executive Committee. He was a member of the Board of Governors of
the NASD and former chair of its Investment Companies Committee.
Mr. Riepe currently serves as a member of the Board of Directors of The
Nasdaq Stock Market, Inc. and is Chairman of the Board of Trustees of the
University of Pennsylvania. Before joining T. Rowe Price, Mr. Riepe served as
Executive Vice President of The Vanguard Group.
Mr. Bernard, 49, has worked directly with Mr. Riepe since joining the firm
in 1988. He currently oversees T. Rowe Price's distribution activities for
individual investors and financial intermediaries, as well as all corporate
marketing and communications functions. He has been involved in a wide range
of the firm's distribution and servicing activities during his tenure, and is
actively involved in oversight of the firm's mutual funds. He has served on
the firm's Board of Directors since 1999 and Management Committee since 2000.
"Jim Riepe has been a prominent leader in our firm and our industry over
the past 24 years," said George A. Roche, Chairman and President. "He has
made substantial contributions to the firm's growth and stature, both
nationally and globally. His retirement comes at a time when T. Rowe Price is
in a strong position financially and competitively, and our distribution and
servicing activities are well-positioned for the future. His leadership will
be missed, but he has built an extremely capable and experienced team that is
well prepared to develop and execute our business strategies."
During Mr. Riepe's tenure, the firm has expanded its distribution efforts
to institutions, individuals, financial intermediaries, and, more recently,
institutions and intermediaries based outside the U.S. The firm has become a
leading manager of retirement plan assets, and it offers a wide array of
products and services, including mutual funds, defined contribution plan
servicing, institutional investment portfolios, and sub-advised investment
management for third parties.
Mr. Riepe oversaw significant expansion of the Price family of mutual
funds, which had $155 billion in assets as of June 30, and has served as
Chairman of the Price Fund Boards.
"T. Rowe Price will continue its longstanding commitment to world-class
service for our clients and a diversified distribution strategy to support the
firm's growth," Mr. Bernard said. "Our corporate culture and tradition have
always emphasized the primacy of client interest, and that remains the bedrock
of our business strategy, even as we expand our services to a growing number
of investors around the world."
Mr. Riepe said that, "T. Rowe Price has established itself as one of the
premier investment management firms in the world and I am grateful to have
been part of that success. I am proud of what we have accomplished, excited
about the firm's prospects and confident in the next generation of leaders.
Although I intend to remain active in business, after 24 years I believe it is
time to pass the baton."
Mr. Roche also noted that Mr. Riepe's retirement is part of a long-planned
transition in the firm's management team. "T. Rowe Price has focused on
maintaining depth and breadth in our senior management, and that's why the
firm has been led by a Management Committee for more than 20 years. That group
has been expanded and strengthened in recent years and is currently comprised
of seven senior managers who have worked together for many years. As we look
to the future, I am confident that the firm and its clients will be well
served by our next generation of leadership."
Mr. Riepe will not stand for reelection to the firm's Board of Directors
or as a director of the T. Rowe Price Fund Boards when these terms expire next
April. Mr. Bernard will be nominated to succeed Mr. Riepe as a director of the
Fund Boards.
Founded in 1937, Baltimore-based T. Rowe Price Group, Inc. is a global
investment management organization with $244.8 billion in assets under
management as of June 30, 2005. The firm provides a broad array of mutual
funds, sub-advisory services, and separate account management for individual
and institutional investors, retirement plans, and financial intermediaries.
The company also offers a variety of sophisticated investment planning and
guidance tools. T. Rowe Price's disciplined, risk-aware investment approach
focuses on diversification, style consistency, and fundamental research. More
information is available at http://www.troweprice.com.
SOURCE T. Rowe Price Group, Inc.
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Related links:
http://www.troweprice.com
CONTACT:
Brian Lewbart, +1-410-345-2242; Steve
Norwitz, +1-410-345-2124; or Rajiv Vyas, +1-410-345-6559; all of
T. Rowe Price Group
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